The price of Bitcoin surged on Feb 12, reaching its highest level since December 2021 as market participants’ excitement over spot BTC exchange-traded fund inflows and the upcoming BTC supply halving in April lifted investors’ expectations.
At the time of writing, BTC price reached a session high of $50,000, having gained more than 3%, according to data from Coinmarketcap and TradingView.
After the $50,000 level achieved, which happened two months before the halving, many investors are anticipating BTC price to make a hit at the $69,800 all-time high, last seen on Nov. 8, 2021.
What caused the sudden rise in Bitcoin?
The rise of the Bitcoin price in the last few hours was followed by a spike in crypto market liquidations, which reached over $152 millions, with the tally still increasing at the time of publication, according to data from Coinglass.
Bitcoin’s strong performance comes as the inflows into spot BTC-ETFs have increased over the past week. Last week, spot ETFs attracted over $1.1 billion in inflows as outflows from the Grayscale Bitcoin Trust continued to slow down.
According to a Feb 12 report, the “newly issued spot-based Bitcoin ETFs in the US, the Bitcoin witnessed a net of US$1.1bn inflows only last week, bringing inflows since the January 11th launch to US$2.8bn.”
🟢 Digital assets start the week with US$1.1bn inflows!
AuM is at its highest level since early 2022, at US$59bn.
– ETFs dynamics –
📈 The momentum of inflows into new issuers is not slowing down. Newly issued US spot-based Bitcoin ETF now total US$2.8bn inflows since their… pic.twitter.com/kGqVU6jX62
— CoinShares (@CoinSharesCo) February 12, 2024
Another reason for this growth is largely due to the activity of miners, who reduced daily sales from more than 800 BTC at the end of 2023 to less than 300 BTC at the beginning of 2024. The pressure on the Grayscale (GBTC) sell-off market has also eased since late January. In addition, the rally is fueled by expectations of the halving , which will occur in April this year.